Short-term lets legislation changes in Scotland

Scottish legislation for short-term lets came into effect in 2022. It introduced a licensing scheme and a new power which allows local authorities to introduce planning control areas.

Anyone operating a short-term let before 1 October 2022 must apply for a licence by 1 October 2023.

Those who want to set up and operate a short-term let for the first time need a licence before they take any bookings or accept any guests. This applies to new businesses that were not operating before 1 October 2022.

Page last updated: 2 March 2023

In this section:

1. What is the short-term let legislation?
2. Who is it for?
3. What do you need to do?
4. Next steps to get ready to apply for a licence
5. Frequently Asked Questions (FAQ)
6. Industry Advisory Group (IAG)
7. IAG participants

Learn what the legal requirements for letting a holiday property are, and how the new licensing laws in Scotland will work.

Please note that this webpage includes a summary of the law relating to short-term lets. You should take further advice on how the law applies to specific circumstances.

Have you read through this guidance and feel you still need further help or information?

• Please email our customer services team

1. What is the short-term let legislation?

The Scottish Government has introduced a licensing regime for short-term lets in Scotland. The scheme requires all local councils to establish a short-term let licensing scheme.

Planning Control Areas (PCAs)

Local councils may also choose to designate short-term let Planning Control Areas (PCAs). This means that you need planning permission to let out whole accommodation in these areas. This is in addition to a short-term let licence.

You may wish to contact your local council for advice if you are unsure whether you need planning permission.

• Read more about Planning Control Areas (PCAs)

2. Who is it for?

The licensing scheme applies to anybody operating short-term lets in Scotland. All 32 local councils have a scheme. Regulations apply to all short-term let accommodation, unless specifically excluded.

• Check out the Scottish Government website for more information

If you are unsure whether you need a licence or not, you may wish to consider seeking independent legal advice.

• Read the Scottish Government guidance - more extensive information and a list of exclusions

Do you have a House of Multiple Occupations (HMO) licence?

If you offer short-term lets within your HMO, you will also need a short-term let licence in addition to your HMO licence. Unless you operate a short-term let for less than six weeks. In that case, you might be able to apply for a temporary exemption if your council offers this.

3. What do you need to do?

Local councils have information and application forms on their websites.

Getting your application right first time will help councils in processing it and it may also help you to get a decision more quickly. The timescales for determination are dependent on various factors including licensing council workloads.

Your licensing council will set out the detail and format of any documentation that you need for your application on their website. Local councils will charge a fee for making a licence application. Fees differ across local councils and for different types of licence, e.g. home sharing, home letting and secondary letting. If you need to apply for planning permission, there will also be a fee for making a planning application.

There are mandatory conditions that every short-term let in Scotland will need to follow. These relate to the safety of the activity. Licensing councils can also set extra conditions according to local needs and circumstances.

The Scottish Government has provided guidance:

• Short-term lets - licensing scheme part 1: guidance for hosts and operators

• Short-term lets - licensing scheme part 2: supplementary guidance for licensing authorities, letting agencies and platforms

4. Next steps to get ready to apply for a licence

We suggest you take the time to consider the following two actions:

1. Check with your local council if you need planning permission or a certificate of lawfulness to operate a short-term licence. This is particularly important if you are in a Planning Control Area, but you may also need permissions outwith those areas
2. Review the mandatory licence requirements and start the work you need to do to comply

View further information on mandatory conditions on the Scottish Government website.

5. Frequently Asked Questions (FAQs)

We collated the following FAQs in conjunction with an Industry Advisory Group representing the sector. Many questions came from businesses that attended the ASSC short-term let regulation roadshows.

We know there are many more questions related to this new legislation. That's why we’ve pulled some of the key questions – and more importantly answers – to make it a little easier for you. These are currently grouped into three key themes:

• Getting a licence – who, what and why?
• Planning permission
• Other questions

More questions will be added in the future, so please check back regularly.

6. Industry Advisory Group (IAG)

We're working closely with the associations who represent those affected by this legislation. In doing so, we formed an Industry Advisory Group.

Committed to working together, we have set out to make sure businesses have the most up-to-date information. This is in collaboration with the Scottish Government.

We want to help you through the process of applying for a short-term let licence or planning permission.

We’ll be updating this page regularly so do check back.